- The USD / CHF forecasts a recovery of 50 pips during the US session.
- The dollar is strengthening after Fed Powell rejected negative rates.
- The US dollar index remains above 100 after Tuesday’s decline.
Sales pressure surrounding the greenback during the first half of the day resulted in USD / CHF pair at a daily low of 0.9665. Nevertheless, comments by FOMC President Powell on the monetary policy outlook sparked a new wave of buying in USD and helped the pair recover its losses. At the time of writing, the pair was up 0.27% on the day at 0.9720.
DXY gains ground during the American session
While commenting on the current state of the US economy, Powell acknowledged that additional political measures may be necessary to avoid lasting damage to the economy. However, the Chair noted that the Fed intends to continue using the tools he has already tried and has made it clear that he is not looking at negative rates.
The American dollar The index (DXY), which fell to a daily low of 99.58 during the European session, has made a sharp turn and now appears to close the day above 100.
Meanwhile, market sentiment turned sour on Powell’s comment and allowed CHF to limit losses against its rivals. Reflecting the risk-free environment, the main Wall Street indices lost between 1.5% and 2.3%.
Thursday, Producer price index Swiss data will be released at 6.30 GMT. Later in the day, the US economic record will present weekly data on initial jobless claims as well as the import price index and the export price index.